Diploma PLC Trading Statement (7560I)
March 30 2015 - 2:00AM
UK Regulatory
TIDMDPLM
RNS Number : 7560I
Diploma PLC
30 March 2015
DIPLOMA PLC
12 CHARTERHOUSE SQUARE, LONDON EC1M 6AX
TELEPHONE: +44 (0)20 7549 5700
FACSIMILE: +44 (0)20 7549 5715
FOR IMMEDIATE RELEASE
30 March 2015
DIPLOMA PLC
TRADING UPDATE
Diploma PLC, the international group of businesses supplying
specialised technical products and services, is today issuing a
trading update for the six months ending 31 March 2015, ahead of
going into its close period.
Trading Summary
The businesses acquired during the past year have made a good
contribution to the Group's overall results and revenues for the
six months ending 31 March 2015 are expected to be ca. 9% ahead of
the comparable period. The acquired businesses have contributed ca.
9% to Group revenues, but currency volatility has continued to
impact the Group's results, reducing revenues by ca. 2%. On an
underlying basis, after adjusting for the impact of currencies and
acquisitions, revenues are expected to increase by ca. 2%.
The main driver to revenue growth has been from the Seals
businesses where revenues have benefited both from acquisitions
completed last year and from strong demand, particularly in the
North American Seals businesses. In Life Sciences, the recent
acquisition of the TPD business has contributed to a strong
increase in headline revenues. Underlying growth has been flat as
the Canadian Healthcare businesses have faced tougher markets, with
hospitals increasing their focus on controlling costs as they
approach the end of their budgetary fiscal year. In Controls,
underlying revenues have reduced against the strong prior year
comparative, reflecting lower activity in the Motorsport and
Aerospace fastener sectors and softer European industrial
markets.
Currency movements have continued to impact the Group's results
on both a translational and transactional basis. Further
depreciation against UK sterling, relative to last year, of the
Euro and the Canadian and Australian dollars, more than offset the
impact from the appreciation of the US dollar. The transactional
impact from currency depreciation on the Life Sciences businesses
has contributed to a slightly lower Group operating margin, as
anticipated.
Financial Position
After spending ca. GBP34m on completing the acquisitions of TPD
(Life Sciences) in October 2014 and Kubo (Seals) in early March
2015, the Group expects to have net debt of ca. GBP18m at 31 March
2015, compared with cash balances of GBP21.3m at 30 September
2014.
The Board will provide a further update on trading prospects for
the year when the Group's Half Year's results are announced on
Monday, 11 May 2015.
Note: A copy of this Statement, together with further
information about Diploma PLC, may be viewed on its website at
www.diplomaplc.com
+44 (0)20 7549
Diploma PLC - 5700
Bruce Thompson, Chief Executive
Officer
Nigel Lingwood, Group Finance
Director
+44 (0)20 7353
Tulchan Communications - 4200
David Allchurch
Martin Robinson
NOTE TO EDITORS:
Diploma PLC is an international group of businesses supplying
specialised technical products and services to the Life Sciences,
Seals and Controls industries.
Diploma's businesses are focussed on supplying essential
products and services which are funded by the customers' operating
rather than their capital budgets, providing recurring income and
stable revenue growth.
Our businesses design their individual business models to
closely meet the requirements of their customers, offering a blend
of high quality customer service, deep technical support and value
adding activities. By supplying essential solutions, not just
products, we build strong long term relationships with our
customers and suppliers, which support attractive and sustainable
margins.
Finally we encourage an entrepreneurial culture in our
businesses through our decentralised management structure. We want
our managers to feel that they have the freedom to run their own
businesses, while being able to draw on the support and resources
of a larger group. These essential values ensure that decisions are
made close to the customer and that the businesses are agile and
responsive to changes in the market and the competitive
environment.
The Group employs ca. 1,300 employees and its principal
operating businesses are located in the UK, Germany, US, Canada and
Australia.
Over the last five years, the Group has grown adjusted earnings
per share at an average of 20% p.a. through a combination of
organic growth and acquisitions. Diploma is a member of the FTSE
250 with a market capitalisation of ca. GBP900m.
Further information on Diploma PLC, together with a copy of this
Announcement, is available at www.diplomaplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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